United Parcel Service, Inc. Class B (UPS)

In the past six months, UPS shares soared by 10-12% on October 28, 2025, after reporting stronger-than-expected Q3 2025 earnings, attributed to cost-cutting measures. Prior to this, UPS's stock had experienced a significant decline, down about 28-29% year-to-date. In Q2 2025, UPS reported consolidated revenue of $21.2 billion, exceeding forecasts, but diluted earnings per share of $1.55 slightly missed expectations, leading to a 7.84% drop in pre-market trading. A strategic decision by UPS to move away from lower-margin Amazon volume also contributed to a nearly 15% plummet in share prices earlier in the year.

Demand for UPS's products and services exhibits clear seasonality, with significant spikes during the holiday season. This surge in demand leads UPS to implement demand surcharges, which have become a permanent feature due to factors like e-commerce growth and shifts in global supply chains. UPS's demand surcharges are influenced by factors such as package size, weight, destination, and the specific demand period.

United Parcel Service, Inc. (UPS) is a global leader in logistics and package delivery, operating primarily within the industrials sector, specifically in the transportation industry. UPS's major products and services include ground shipping, air shipping, freight forwarding, customs brokerage, and supply chain management. The company also provides retail services through The UPS Store and financial services via UPS Capital and has expanded its focus on healthcare logistics.

UPS has an extensive global presence, serving over 200 countries and territories worldwide. Its global hub for air shipments, Worldport, is located at Louisville Muhammad Ali International Airport in the United States. The company has a strong operational presence in Europe, Asia Pacific, Canada, Latin America, and ISMEA.

UPS has maintained a strong brand reputation over the past year, receiving accolades from Axios Harris Poll 100, Newsweek, Forbes and Morning Consult. UPS led the industry in on-time holiday deliveries for the seventh consecutive year in December 2024. However, tensions emerged between UPS and the International Brotherhood of Teamsters due to a proposed Driver Voluntary Severance Plan, which the union viewed as a violation of the 2023 National Master Agreement.

Institutional investors hold a significant majority of UPS shares, owning around 72% of the company. The largest institutional shareholders include The Vanguard Group Inc., BlackRock Inc., and State Street Corporation. Insiders directly hold less than 0.1% of UPS shares. As of July 2023, Carol Tomé, UPS CEO, was the largest individual shareholder.